MKs from Shas and UTJ, led by Aryeh Deri, have submitted a law proposal by which batei medrash and yeshivas would be granted an exemption from paying arnona tax, similar to the exemption given to shuls.

The exemption form paying arnona would only apply to such institutions that have no business activity on the premises (such as rental of a social hall) and is only used for learning and davening activities.

Minister Zeev Elkin was opposed to the law as it would significantly hurt the City of Jerusalem financially. Deri tempered his opposition by offering to pay the shortfall of monies created by this law out of the coffers of his offices.
source: Channel 2 News

I wonder what the public reaction to this bill will be...